Working Together to Address a More Complex Media

Environment

Prepared for: Chilean Media IndustryJuly 2012

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Agenda Meeting Purpose MRC Background Standards Setting International Work Audit and Methodology Issues Q&A

Meeting Purpose

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Purpose In the last several years, the media environment, enabled by new

consumer access and technology, has become increasingly complex. This has led to:

Increased needs for standards in measurement – metrics, approaches, greater detail, etc.

Growing support for MRC functions; other US associations seeking MRC’s leadership and assistance; for example “viewability”

Significant increases in audit requests Some recognition of MRC internationally and requests for our involvement

in other countries, mostly driven by multi-national MRC members and several measurement services

The developing need to assess audiences across media types Increased need for education to promote quality media measurement

practices

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Purpose We are here today to introduce you to MRC, our structure, mission

and the scope of our work. We want to give you a sense of the issues that are consuming our

energy today. We want to make sure you understand the resources available to

you – Standards, Auditing, etc.

We ask you to consider participating in the MRC’s International activities.

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MRC Background

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History and Mission of the MRC U.S. Congressional Hearings Held in 1963-64 System of Self Regulation Established Founded as the “Broadcast Rating Council” Not-for-Profit Entity Voluntary Process for Measurement Services to:

Supply Complete Information to the MRC Comply with MRC Minimum Standards Conducted the Service as Represented to Clients Submit to Annual Audits Pay for the Audit Costs (internal & external)

Confidential Process Originally Recommended by the U.S. Congress

MRC Mission Statement To secure for the media industry and related

users audience measurement services that are valid, reliable and effective;

Set Standards; and

Conduct Audits to Verify Compliance with Standards.

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Resources MRC

George Ivie, Executive Director (1/2000) Former Ernst & Young Partner, Performed MRC Audits for 16 Years, Information Systems Focus.

Anthony Torrieri, SVP, Associate Director (3/2003) Over 25 years of Agency experience. Extensive buyer-side knowledge and focus.

David Gunzerath, SVP, Associate Director (7/2007) 8 years as VP of NAB Research, 9 years with TV Guide, Accounting background.

Jim Peacock, Consultant Over 30 years experience in media research. Fifteen years Head of Research at Arbitron.

MRC Membership – Various Audit Committees Technical Committees

Independent CPAs Ernst & Young – Specialized Team PricewaterhouseCoopers (Digital Audits Only) Deloitte & Touche (Digital Audits Only)

Significant Growth and Complexity

Key Statistics in U.S.

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1960s 1990 2000 Today

MRC Members 15 15 48 145

Audits 4 5 6 75*

* Includes >50 Digital Audits; Excludes International Work

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MRC Member Organizations

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MRC-Audited Products – U.S. Accredited

ACT1 Radio TPP Arbitron

Local Diary Service, Max, County Coverage, CSAR PPM – Atlanta, Cincinnati, Houston, Kansas City,

Milwaukee, Minneapolis, Philadelphia, Phoenix, St. Louis Internet Audits

ComScore Direct Nielsen Online Campaign Ratings Omniture Adobe Compliant Traffic Report Quantcast Quantified Publisher Visible Measures Ad-Serving: Cox Digital Solutions, AdTech, CBSi, Univision,

Yahoo!, Disney, Atlas, DoubleClick (DFP, DFA), FreeWheel, GLAM Media, Google, LiveRail,Turner, AOL, MSN, 24/7, MediaMind, RealVu, Vindico, PointRoll, Auditude

Clicks: Google, Yahoo!, MS adCenter, MS Media Console, Cox Digital Solutions

KMR MARS Ibope Puerto Rico (Mediafax) Mediamark Research National Syndicated Study Media Monitors Radio Spot Service Nielsen Media Research

National – NPM, Average Commercial Ratings MIT, NPower Local Set Meter Services, LPM Markets, Puerto Rico LPM

Scarborough Simmons National Consumer Study TGI Puerto Rico Triton Digital Streaming (Ando Media)

In-Process Internet Audits

Google AdPlanner,Google DART Mobile, Digital Envoy, Quova, Adap.TV, TidalTV, Videology (TidalTV), Telemetry, DoubleVerify, Vizu, AdSafe

Arbitron PPMs Austin, Baltimore, Charlotte, Chicago, Cleveland,

Columbus, Dallas, Denver, Detroit, Greensboro, Hartford, Indianapolis, Jacksonville, Las Vegas, Los Angeles, Memphis, Miami, New York, Nashville, Norfolk, Orlando, Pittsburgh, Portland OR, Providence, Raleigh, Riverside, Sacramento, Salt Lake City, San Antonio, San Diego, San Francisco, San Jose, Seattle, Tampa, Washington DC, West Palm Beach

BlackArrow comScore

Media Metrix, Video Metrix Campaign Essentials

Mendelsohn Affluent Study NEC Display Nielsen Local TV Diary Service, STB Data Nielsen NetView, NetView Hybrid Rentrak TV Essentials SQAD TV Costs

Other – Ancillary Data Claritas, Sample Frame Vendors

Summary of Television Initiatives Traditional Auditing

UEs National Orientations Local Orientations Enrichment of Data Beyond Households (Colleges, Group Quarters, Bars,

Events) Emerging Perspectives – Driven by Changes in How Consumers Interact

with Television Return Path Data, Hybrid/Integration Methodologies

Seeking more stability and better insight into niche populations Fusion Online/TV Cross-Media (GRP) Orientations Monetization of Authorized and Unauthorized Video

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Meter Technologies Audited

Television: AGB Tech – TVM2 and TVM5 (Mexico) Nielsen International – Eurometer (Ecuador, Costa Rica,

Panama, etc.) Nielsen Media – AP Meter and Mark II (U.S.) IBOPE International – DIBII and DIBIV (Brazil, etc.) Telecontrol – TC7 and TC8

Television/Radio/Audio: Arbitron – PPM (Canada, U.S.)

Internet: Nielsen Online – NetView (PC and MAC OS) comScore Media Metrix – Cproxy

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Standards Setting

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Industry Standards are Critical MRC Mission – “Set Standards”

Stop Relying on “Custom Criteria” Key Buyer Concerns

Consistency Accuracy

Enhanced Trust

We have always undertaken these activities, but there is substantial increased demand/need across all media types; primarily driven by digitalization.

The MRC Minimum Standards (See www.mediaratingcouncil.org for detail)

Originally Completed in 1964 Kept up to date by MRC Board

New BCP Standard Rolling Out in 2012

Components: A: Ethical and Operational Standards B: Disclosure Standards C: Electronic Delivery/Software Standards

Key Audit Benchmark

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Existing Standards MRC Minimum Standards

As Supplemented by Industry Specific Guidance NAB, ARF, IAB, ESOMAR, etc.

MRC Media Monitoring Standards IAB-Specific Guidelines (Written by MRC)

Impressions Display, Video, Rich Media, RIA, Process Addendum, Auto-

Play Video Clicks Audience Reach In-Game Advertising Ad Verification Services

MMA/IAB Mobile Web Guidelines (Written by MRC) Other

Data Integration (MRC), Outdoor (MRC, ESOMAR, etc.)

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Currently Under Development/Consideration

Set-Top-Box Partner: NCC, MVPDs

Data Accumulation (draft posted on www.mediaratingcouncil.org)

Mobile Partners: MMA, IAB, GSMA

Applications (In-Process; nearing completion) Messaging (Planned)

Social Media Partners: IAB, WOMMA

Digital Audio Streaming Partners: IAB, RAB, MMA, Others?

Media Mix Modeling Partners: MPA, Others? Under Consideration

SIGNIFICANT GROWTH IN DEMAND FOR THIS ACTIVITY

International Activity

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MRC International Activity MRC Does Not Accredit services outside

U.S. Rather, On Request MRC Serves as a

Consultant on Rating-Service Audits which: Use MRC Minimum Standards as benchmark Are conducted by experienced MRC CPA auditors Have reasonable transparency for results – Important Have an appropriate local Committee present

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International Audits Television:

ABAP-Redes – Brazil BBM Client Committee – Canada International Audit Committee (Cable) – Colombia, Argentina Client Committee – Costa Rica Technical Commission – Ecuador CIM – Mexico Client Committee – Panama CUSEA – Peru

Radio: BBM Client Committee – Canada Radio Committee – Peru

Print: Valida – Chile CUSEMI – Peru

Internet: Miaozhen Systems Audit Committee – China

Note: Puerto Rico services receive full U.S. accreditation processes.

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International Committee

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Committee Role Began Activities in 2011 International Committee (full operating group) has the following

administrative functions: Establish international audit priorities including new audits Assist with local-user and local-committee outreach Determine need for and priority of additional Standards Develop plan to promote international best practices Meet annually in person, more often via teleconference

International organizations and media companies can become members to allow input in Committee functions and audits

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Audit Related Functions Specific “Audit subcommittees” formed for each

participating international service Would review new-audit scope and specifications Would then review audit results in detail Committee assists MRC Staff and provides guidance on

recommendations for the audited service Work with measurement services on creating of audit-related

action plans Would meet in person (and phone) each time a relevant audit

report is issued

Key Focus Areas: LATAM and Digital Much of our historical work has been in these areas

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To be clear… We are NOT seeking to replace local audit committees;

we want to work cooperatively with these committees

We are NOT seeking to force U.S. policy on others; we believe we can learn from each other

We are seeking to promote some fairly important attributes, we believe are of common benefit:

Attributes Promoted Transparency of Methodology with Customers Disclosure of Operating Performance of Service to Customers, e.g.,

Response Rates Standard Errors Sample Distribution and Representation Error Disclosure Policy Disclosure of Sampling and Non-Sampling Issues

Sound Internal Controls, Documentation, Policies and Procedures Security of Panel Verification of Methodology, Calculations, Weighting/Projections

Building Process We are actively seeking members of the International

Committee

Who are we looking for: Common Interest in Quality Promoting Good Research, Not Business Interest Annual Dues -- $12,500, with 3-year Commitment for Media

Entity; TBD for a Country Audit Committee Strict Commitment to Non-Disclosure Willingness to Actively Participate

Types of Issues Addressed

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Sample of Key Issues -- Traditional New Technology Challenges

Consumer Measurement

Sample Frame Coverage; Probability Methods, etc. Data Collection Quality Content Source Confusion

Digital Print Consistency of Ad Content

Response Rates Sample Distribution/Sample Sizes/Reliability Race/Ethnic/Young Representation

Recruitment Techniques Accuracy of Universe Estimate Data Editing Quality / Ascription Cross-Media Comparability

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• Users vs. Computers• Cookie Deletion

• Sufficiency of Client Side Counting• Auto-Refresh, Non-Human Traffic

• Internal Traffic• In-Session Gaps

• New Types of Usage, WAP/Mobile, etc.

• International Traffic• Cross Domain I-Frames

• Viewability

Ad-Centric orAd-Centric orSite-CentricSite-Centric

(Census)(Census)

• Panel Representation• Meter Coverage

• Capturing All Access Locations• Metering All Computers of Panelists

• Initial Demo Data Collection• User In-Session Identification• Sample Sizes, Standard Errors

• Non-Response Levels

User-CentricUser-Centric(Panel)(Panel)

• Internal Controls• Editing, Calibration, Weighting

• Transparent Methodology

CommonCommonand Hybridand Hybrid

Sample of Key Issues – New MediaSample of Key Issues – New Media

Thank You!

Follow-up contact or questions are welcome:George Ivie

Executive Director, MRC

givie@mediaratingcouncil.org

+1 (212) 972-0300

http://www.mediaratingcouncil.org

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